New fund complements firms existing lineup of low-carbon index ETFs
Desjardins Global Asset Management (DGAM) has updated its lineup of low-carbon ETFs with a new emerging market-focused strategy.
The Desjardins RI Emerging Markets – Low CO2 Index ETF, now trading on the TSX under the ticker symbol DRME, comes with a management fee of 0.35%. It seeks to replicate the performance of the Scientific Beta Desjardins Emerging Markets RI Low Carbon Index, net of fees and expenses.
“We are pleased to offer our investors attractive growth potential while supporting the transition to a greener economy through the largest range of responsible investment products in Canada,” said DGAM CEO Nicholas Richard.
Under normal conditions, the fund will invest primarily in large- and mid-cap companies within the Scientific Beta Emerging Markets Universe, while seeking to significantly reduce the weighted average carbon intensity across its portfolio holdings and ensuring the constituent issuers meet pre-determined ESG standards.
Demand for ESG ETFs has swelled over the past year as investors’ sustainable-investing interests expand past environmental concerns to include more social and governance issues. That has supported the global ETF industry’s growth to US$8 trillion in AUM, with flows into ESG ETFs totalling US$19 billion during February alone.
